Ajmera Realty to Invest ₹7,000 Crore in Major Mumbai Real Estate Development

Ajmera Realty & Infra India Ltd has announced a substantial investment plan of around ₹7,000 crore for developing approximately 2.3 million square feet across residential and commercial projects in the Wadala area of central Mumbai. This investment is a key component of the company's broader strategy to unlock an estimated value exceeding ₹12,000 crore from its land holdings in the locality over the next four to five years.

The company is currently executing the second phase of its Ajmera Manhattan project, which has a Gross Development Value (GDV) of ₹1,750 crore and a carpet area of 5.4 lakh square feet. Furthermore, in the latter half of the current financial year, Ajmera Realty intends to develop a boutique office project spanning 6 lakh square feet with an estimated GDV of ₹1,800 crore. Looking ahead to the next financial year, the company is preparing to enter the premium residential segment with a project covering nearly 1.4 million square feet, projected to have a GDV of ₹5,700 crore. Subsequent phases of the Ajmera Manhattan project, comprising 9 lakh square feet, are expected to contribute an additional GDV of ₹3,200 crore.

Financially, Ajmera Realty reported a 2% year-on-year increase in net profit to ₹71 crore for the first half of the current financial year, with revenue growing by 20% to ₹481 crore. Operating profit saw a 6% rise to ₹139 crore, while collections increased by 52% to ₹454 crore. Sales value climbed 48% to ₹828 crore, driven by strong demand across new projects, with a 20% growth in sales volume to 293,016 sq ft.

Impact This significant investment signals strong confidence from Ajmera Realty in the Mumbai real estate market, especially in prime central locations. It is expected to spur construction activity, create employment opportunities, and potentially enhance the company's market valuation and investor interest. The planned developments cater to various segments, from commercial offices to luxury residences, suggesting a strategic approach to market demand. Impact Rating: 7/10

Difficult Terms: Gross Development Value (GDV): The total projected revenue from the sale of all units in a real estate development project. Net Profit: The profit a company makes after deducting all operating expenses, interest, and taxes from its total revenue. Carpet Area: The actual usable floor area within the walls of a property, excluding the thickness of internal and external walls.